Ezel / IRS Rulings / 201119029

CCA 201119029: truck manufacturer may claim a heavy-truck-tax refund

Number
201119029
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Certain Taxes on Sales and Services
Topics
Procedure, penalties, and administration
Code sections
§ 4051, § 6402, § 6416
Ruling dated
March 28, 2011
Publicly released
May 13, 2011
Source
View Official PDF

Apply this to your situation

This page covers legal advice the IRS Office of Chief Counsel wrote for IRS staff, issued in 2011, which can't be cited as precedent. Ask about your situation and see what the current Code and IRS guidance say, with citations.

Currency note: this determination was released in 2011
Statutory amendments, regulation changes, court decisions, or later IRS guidance may have changed the analysis since then. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, threshold, or position mentioned here.
Not precedent. Under 26 U.S.C. § 6110(k)(3), this written determination may not be used or cited as precedent. It is advice from the IRS Office of Chief Counsel to IRS personnel on the facts they presented, and identifying details were redacted by the IRS before release. The official IRS release (linked on this page as a PDF) is the authoritative source.
About this page: The plain-English summary and ruling snapshot below were written by Ezel based on the official IRS release. The full text is the IRS's own document.
View official IRS release (PDF)

Plain-English summary

Chief Counsel advised that a truck manufacturer did not make an ordinary overpayment when it sold a truck to a retailer. However, IRC § 6416(b)(2) treats the tax paid under § 4051 as an overpayment when the taxable article is sold to a state or local government. The manufacturer may therefore obtain a refund if it meets § 6416(a)'s conditions and provides the proof required by the § 6416(b) regulations.

Ruling snapshot

  • Question: Can the truck manufacturer obtain a refund of tax paid under IRC § 4051 when the truck is ultimately sold to a state or local government?
  • Outcome: Advice given
  • Key authorities: IRC §§ 4051, 6402, and 6416.

Full text (IRS public release)

ID: CCA_2011032807510838 Number: 201119029
Release Date: 5/13/2011
Office: ----------------
UILC: 6416.00-00

From: --------------------
Sent: Monday, March 28, 2011 7:51:10 AM
To: ---------------
Cc:
Subject: Section 6416 Question

Section 6402 allows a credit or refund to the person that made an overpayment. An overpayment is a payment of tax that's more than the person owes. Under this rule, the truck mfg did not make an overpayment on its sale to the retailer…but 6416(b)(2) deems as an overpayment the tax paid under section 4051 if the taxed article was sold by any person to a state or local government. So, the truck mfg can get a refund of this overpayment if it meets the requirements of section 6416(a) (the conditions to allowance) and has the proof required by the section 6416(b) regs.

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